SOURCE: NexTone Communications

September 12, 2006 08:00 ET

NexTone Receives $25 Million Investment From Columbia Partners

New Capital to Fuel Continued Market Expansion as NexTone Logs Record Growth in VoIP Peering and Session Management

GAITHERSBURG, MD and WASHINGTON, DC -- (MARKET WIRE) -- September 12, 2006 --


CORE NEWS FACTS

--  NexTone Communications® has received a $25 million investment from
    Columbia Partners Private Capital, the private investment group of Columbia
    Partners L.L.C., a Washington, D.C.-based investment management group.
    Previous Columbia Partners Private Capital investments include Good
    Technology, iBiquity Digital Corporation, and Traffic.com (NASDAQ: TRFC).
--  This investment brings NexTone's total private funding to date to
    $92.5 million. Earlier venture investors in NexTone include One Equity
    Partners (OEP), BCE Capital, Core Capital, Mid-Atlantic Venture Funds, and
    Safeguard Scientifics.
--  NexTone has achieved record bookings in 2006 for its IntelliConnect
    System™, a suite of intelligent session management and interconnect
    products designed for Voice over IP (VoIP) and IP Multimedia Subsystem
    (IMS) service providers. NexTone customers currently carry over 50 percent
    of the world's international VoIP traffic.
--  The IntelliConnect System enables service providers to enforce service
    quality and optimize service economics by providing a common way to
    exchange, optimize, secure, and bill for VoIP and multimedia sessions that
    flow across network boundaries. As a result, NexTone enables service
    providers to expand their service reach and accelerate VoIP and multimedia
    revenues.
--  Industry analyst group Infonetics Research projects that worldwide
    service provider revenues for VoIP and IMS equipment will more than double
    between 2005 and 2009, from $2.5 billion to $5.8 billion.
--  NexTone's global success is fueled by the rapid adoption of inter-
    carrier VoIP peering and enterprise SIP trunking, which allows its
    customers to route traditional TDM voice minutes over IP -- a significant
    advantage to deploy VoIP efficiently and cost effectively. Rapid growth is
    also coming from Tier 1 and Tier 2 carriers that are moving their VoIP
    implementations from the lab environment to production networks, while
    existing VoIP carriers build upon their wholesale service offering with new
    SIP-based retail services. In addition, NexTone is viewed as the de facto
    standard for IMS peering: 75% of GSMA carriers participating in recent
    interoperability trials of IMS services used NexTone to switch real-time IP
    multimedia traffic such as interactive gaming.
--  NexTone will use the funds to further enhance its product portfolio
    and expand its customer base.
    

COMMENTARY

--  Christopher Doherty, managing director, Columbia Partners Private
    Capital: "Columbia Partners was interested in participating in the enormous
    growth potential of the VoIP and IMS markets. NexTone is an outstanding
    opportunity, since it provides essential infrastructure for service
    providers and is a leader in its class. The company also has an outstanding
    track record for quarter-over-quarter growth, repeat customer business, and
    continued technological innovation."
--  Malik Khan, chairman and chief executive officer, NexTone
    Communications: "NexTone is currently experiencing record growth because
    the market opportunities in VoIP and IMS are so vast. This investment from
    Columbia Partners allows us to accelerate our business plan by rapidly
    scaling NexTone's strategic initiatives and expanding our product line and
    support organizations to match the diverse requirements of our growing
    customer base."
    

MULTIMEDIA SUPPORT

-- What is VoIP Peering?

-- Why are Session Management and Intelligent Interconnects Important?

-- The NexTone IntelliConnect System

About Columbia Partners Private Capital

Columbia Partners Private Capital is the direct investment unit of Columbia Partners, L.L.C. Investment Management, a Washington, D.C.-based registered investment advisor managing over $2.4 billion. The firm's clients are Public, Taft Hartley, and Corporate pension funds. With over $200 million under management, Columbia Partners Private Capital makes structured finance investments primarily in mid to later stage, privately held growth companies. For more information visit the Private Capital website at www.columbiaprivatecapital.com

About NexTone Communications

NexTone Communications develops intelligent session management and interconnect systems for service providers who want to rapidly expand their reach and accelerate VoIP and multimedia revenues. NexTone's IntelliConnect System provides service providers with visibility and intelligence to exchange, optimize, secure and bill for voice and multimedia sessions flowing across diverse IP and IMS network boundaries. More than 500 service providers and enterprises worldwide use NexTone's IntelliConnect System to manage technical complexities, optimize business economics, and remove partnership hurdles. The company is headquartered in Gaithersburg, Maryland, USA, with domestic and international sales offices worldwide. For more information, visit http://www.nextone.com

Contact Information

  • MEDIA CONTACTS:
    Stephanie Gallagher
    Engage PR for NexTone
    Phone: +1.703.531.9771
    Email: Email Contact

    Jason Crist
    Columbia Partners
    Phone: +1.202.496.5633
    Email: Email Contact